"Fit and Proper” – A Study of IL&FS Governance Practices

Authors

  • Niranjan Pendse Research Scholar Tilak Maharashtra Vidyapeeth Pune
  • Kaustubh Sontakke Head, Center of Excellence in Finance SIES College of Management Studies Navi Mumbai

DOI:

https://doi.org/10.33516/maj.v54i2.80-84p

Abstract

IL&FS is a premier institution focused on Infrastructure in India. Recently IL&FS has received a lot of negative press coverage after there were default in repayment of its obligations. This paper looks at what were the governance norms at IL&FS and what the annual reports show us. On one side all annual reports show everything that was positive from governance perspective on the other side there was clearly an outcome which would not have happened if governance was strong enough. This paper looks at all the recent coverage in the media. It also looks at how the changes in rating happened from the rating agencies and how good governance is not only necessary for the holding companies but for all group companies including subsidiaries and associate companies. The paper argues that it is important to have the right level of governance in spirit and not in words and also that the multi layered structure and cross holdings can create a big risk to the overall governance of a group of companies.

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Published

2019-02-01

How to Cite

Pendse, N., & Sontakke, K. (2019). "Fit and Proper” – A Study of IL&FS Governance Practices. The Management Accountant Journal, 54(2), 80–84. https://doi.org/10.33516/maj.v54i2.80-84p

Issue

Volume 54, Issue 2, February 2019

Section

Case Study
Crossref
Scopus
Google Scholar
Europe PMC

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